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Re: st: "flat region resulting in a missing likelihood" (error message)


From   Isabelle.Roux@ehess.fr
To   statalist@hsphsun2.harvard.edu
Subject   Re: st: "flat region resulting in a missing likelihood" (error message)
Date   Thu, 26 Feb 2009 14:09:06 +0100 (CET)

Dear Martin and Stas,

Thank you very much for your helpful advice. I understand that what I was
asking to Stata has no sens, in fact I have to do a conditional logit and
so create a dummy variable for every country.

HTH

Isabelle










> This is likely an (empirical) underidentification issue. Your -taxe-
> variable probably does not vary within -country-, and limited
> dependent variable models do not like it when you can predict some
> outcomes perfectly from the values of the explanatory variable.
>
> In fact, I agree with Martin, that's a weird statement of the problem
> to me. -country- makes a poor dependent variable unless you are
> talking about some sort of empirical IO where a big international firm
> chooses where to place their headquarters... I cannot think of any
> other example. If that is indeed your research question, then you are
> basically out of luck. You can try to add some other explanatory
> variables in the RHS of your model, but it may not work in the end,
> with the parameters for -taxe- still not estimated properly (or
> estimated with huge or missing standard errors).
>
> On 2/25/09, Isabelle.Roux@ehess.fr <Isabelle.Roux@ehess.fr> wrote:
>> Hello,
>>
>>  I'm trying to do a multinomial logit and I write to stata: "mlogit
>> country
>>  taxe" where country is the country's choice of firms and taxe is
>> corporate
>>  tax of the country.
>>
>>  Stata refuses to provide results and indicates: "flat region resulting
>> in
>>  a missing likelihood"
>>
>>
>>  In Stata's help I have this message:"convergence not achieved;
>>         You have estimated a maximum-likelihood model and Stata's
>>         maximization procedure failed to converge to a solution;
>>         see [R] maximize.  Check if the model is identified."
>>
>>  I don't know if I have a problem of stata's command or of econometrics;
>> in
>>  this last case, could you indicate me please which topic to study to
>> solve
>>  my problem?
>>
>>
>>  (maybe it is a very obvious question but I am new in econometrics and
>> I'm
>>  a bit lost in regressions!)
>>
>>  Thank you very much for help,
>>
>>  Isabelle
>>
>>  *
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>>
>
>
> --
> Stas Kolenikov, also found at http://stas.kolenikov.name
> Small print: I use this email account for mailing lists only.
> *
> *   For searches and help try:
> *   http://www.stata.com/help.cgi?search
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> *   http://www.ats.ucla.edu/stat/stata/
>


*
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